Investigation on factors that contribute to the abandonment of building in construction industry in Malaysia

Nur Farhayu Ariffin,Mohamad Idris Ali,Noram Irwan Ramli,Mohd Faizal Md Jaafar,Nor Hasanah Abdul Shukor Lim,Khairunisa Muthusamy,N Mohamed Noor,A.W Azhari

doi:10.1051/e3sconf/20183401025

Nur Farhayu Ariffin, Mohamad Idris Ali + Show 6 more

Open Access

https://doi.org/10.1051/e3sconf/20183401025

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Abstract

In Malaysia, the construction sector is one of the important sectors that contribute to economic growth and employments. However, a major concern facing the construction industry is the growing rate of delays in project delivery. In the worse cases, the projects were abandoned due to some reasons when the contract period ended. Abandoned building defines as construction work that has been continuously stalled for 6 months or more, during the project completion period or beyond the scheduled date of completion. When the projects become abandoned, it gives an adverse effect on many parties such as the developer, contractor, consultant and also client. According to previous researchers, the abandonment of building causes a serious problem and need some mitigation plan to avoid this problem from occurring. This study will investigate the fundamental factors that contribute to the abandonment of building and projects in Malaysia based on the current data of the abandoned building in most states in Malaysia. The data was collected from the respondents who is in the construction industry and had experience working with abandoned housing project. Form the respondents perspective, it shows that the main factor contribute to the building abandonment is due to the financial problem facing by the developer company.

Highlights

The construction industry plays a very dominant role in the economy of any nation
According to The Star, [2] if the project has passed its promised delivery date by 10 %, it is considered late; if the delay stretches beyond 10 % to 30 %, it is considered ‘sick’; and if no work has been carried out or no workers are on the project site for up to six months, it is deemed abandoned [2]
The previous Prime Minister, Abdullah Ahmad Badawi was on 22.11.2005, The Star [2] quoted as saying, “If the projects have been monitored on a regular basis from the start, any sign of them being abandoned could have been detected and the salvaged”

Summary

Introduction

The construction industry plays a very dominant role in the economy of any nation. A healthy economy usually experiences an increase in construction activities, but in a depressed economy, the incidence of project abandonment tends to be more prevalent. According to The Star, [2] if the project has passed its promised delivery date by 10 %, it is considered late; if the delay stretches beyond 10 % to 30 %, it is considered ‘sick’; and if no work has been carried out or no workers are on the project site for up to six months, it is deemed abandoned [2] Another definition as found in an Enactment (1978) is; “Abandoned housing development means where a licensed housing developer had refused to carry out, delayed, suspended, stopped or ceased work continuously for a period of more than six months from the expected date of completion/delivery as agreed upon the contract and stated in the sales and purchase agreement” (Housing Development (Control and Licensing) Enactment, 1978). When the project of the building has become abandoned, this can give adverse effects on parties such as the developer, contractor, consultant as well as client. Regarding this matter, this study was conducted to study the factor that contributes to the abandoned building project in Malaysia and the mitigation process to prevent this problem to occur in the future

Literature Review

Methodology

Section A

Cause of Building Abandonment

Conclusions